Page 85 - DHC Budget Book 2021-22 Final
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7.7
Notice u/s 142(1) requiring furnishing of return can be issued by prescribed income tax authority [w.r.e.f. AY 2021-22]
Sec. 142 of the Act provides for conduct of inquiry before assessment. Clause (i) of Sec. 142(1) gives authority to the AO to issue notice to an assessee, who has not submitted a return of income, asking for submission of return. This power can be currently invoked only by the AO.
CG is following a conscious policy of making all the processes under the Act, where physical interface with the assessee is required, fully
faceless by eliminating person to person interface between the taxpayer and the Department. In line with this policy, and in order to enable centralized issuance of notices in an automated manner, it is proposed to amend the provisions of clause (i) of Sec. 142(1) to empower the prescribed income-tax authority besides the AO to issue notice under the said clause.
7.8 Enhancement of threshold limit for Tax Audit to H 10 Crs. in certain cases [Sec. 44AB] [w.r.e.f. AY 2021-22]
The existing provisions of Sec. 44AB provides that every person carrying on business is required to get his accounts audited, if his total sales, turnover or gross receipts exceeds H 1
Cr. in any PY. Vide Finance Act, 2020, in order to reduce compliance burden on small and medium enterprises, Sec. 44AB was amended to increase the threshold limit for a person carrying on business from H 1 Cr. to H 5 Crs. if aggregate of all receipts and payment in cash during the PY of
that person does not exceed 5% of total receipts and payments respectively during the PY.
Now, in order to further incentivize non-cash transactions, to promote digital economy and to further reduce compliance burden of small and medium enterprises, Sec. 44AB is proposed to be amended to enhance the threshold limit from H 5 Crs. to H 10 Crs. for such person.
7.9 CG to notify the scheme for disposal of appeals before ITAT in Faceless manner [Sec. 255] [w.r.e.f. AY 2021-22]
Under the existing provisions of Sec. 255, ITAT has powers to hold sittings at places to discharge its functions.
It is now proposed to insert a new sub-section
7 to Sec. 255 to empower CG to prescribe a new Faceless appeal scheme for disposal of appeals before the ITAT. The CG shall notify the scheme in the Official Gazette so as to impart greater efficiency, transparency and accountability by –
Eliminating the interface between the ITAT and parties to the appeal in the course of proceedings to the extent technologically feasible;
Optimizing utilization of the resources through economies of scale and functional specialisation;
Introducing an appellate system with dynamic jurisdiction
To give effect to above provisions, new sub-
section 8 is proposed to be inserted to enable the CG to direct via notification that any provisions of IT Act shall not apply or shall apply with exceptions, modifications and adaptations. However, no such direction shall be issued after 31-03-2023.
It is further proposed under sub-section 9 that every notification issued under sub-section
7 and 8 shall be laid before each House of Parliament.
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In line with the faceless appeal at CIT(Appeals) level (notified on 25-09-2020), the CG has proposed to notify Faceless appeal at Tribunal level by establishing National Faceless
Income Tax Appellate Tribunal Centre. All communications between the Tribunal and the appellant shall be electronic. Where personal hearing is needed, it shall be done through video- conferencing.
